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February 14, 2023
ITEM TITLE
Agreement: Accept Bids and Award an Agreement with PM AM Corporation to Provide Security Alarm Management Services
Report Number: 22-0321
Location: No specific geographic location
Department: Police
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
Adopt a resolution accepting proposals and awarding an agreement to PM AM Corporation to provide security alarm management services.
SUMMARY
On July 29, 2022, the City of Chula V ista issued Request for Proposal (RFP) # P10 -2023 for companies to provide security alarm management services in support of the City's security alarm program. After completion of the RFP process, City staff is recommending awarding an agreement to PM AM Corporation to provide Security Alarm Management Services.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
Thus, no environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
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DISCUSSION
In July 2014, the City updated its Security Alarm Ordinance, along with implementing new security alarm permit and false alarm fee schedules . Additionally, the City Council approved a contract with PM AM Corporation in October 2013 to administer the Security Alarm Program for the Police Department. These important changes have allowed the Police Department to manage its limited resources and better serve the needs and expectations of our residents and business community.
The existing contract for security alarm management services with PM AM Corporation ended on October 14, 2022, and has been administratively extended, pending the results of the Request for Proposal process.
With the pending contract end date, the City issued a Request for Proposal (RFP) to seek a company who could provide security alarm management services. On July 29, 2022, the City issued RFP # P10-2023. The table below represents the three respondents to the RFP:
Table 1: RFP #P10-2023 RESPONDENTS
CentralSquare Technologies
Municipal Alarm Tracking
PM AM Corporation
An evaluation team, consisting of the Police Administrative Services Manager, Police Support Services Manager, and Principal Management Analyst, reviewed the written proposals and interviewed the respondents regarding their qualifications to administer the City’s security alarm program. After a comprehensive assessment, staff recommends awarding the agreement to PM AM Corporation to administer the security alarm program for the City.
PM AM Corporation was chosen due to their compliance with City required contract terms and overall services offered. The management of the program will continue to include a secure website that security alarm users can access to pay for their permit fees and/or alarm fines via credit/debit card. PM AM Corporation will continue to provide customer service and work with security alarm users regarding the security alarm ordinance. PM AM Corporation will also continue to provide primary billing and collection actions for all City alarm accounts and administer a false alarm education program which security alarm users can take to waive the first fine associated with a false alarm. As part of their RFP response, PM AM Corporation has proposed a 12% share of net revenue collected (which is the same percentage as the current fee structure).
The agreement term with PM AM Corporation for Security Alarm Management Services will be for an initial period of two (2) years effective March 1, 2023, with renewal options for up to three (3) successive one- year periods upon mutual agreement of both parties (potentially through February 28, 2028).
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
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Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no current year fiscal impact as a result of accepting the agreement with PM AM Corporation.
Costs associated with proposed agreement are fully offset by alarm permit fees and false alarm penalties.
The current year budget reflects the expected revenues to be collected and remitted to the City by PM AM Corporation, net of their agreed upon compensation (equal to 12% of security alarm revenues collected).
ONGOING FISCAL IMPACT
Costs associated with proposed agreement are fully offset by alarm permit fees and false alarm penalties.
Future budgets will reflect revenues t o be collected by PM AM Corporation, net of their agreed upon compensation (equal to 12% of security alarm revenues collected).
The maximum amount to be paid to PM AM Corporation through the initial term of the contract (February 28, 2025) shall not exceed $200,000.
ATTACHMENTS
Attachment 1: RFP # P10-2023 for Security Alarm Management Services Attachment 2: Agreement with PM AM Corporation to provide Security Alarm Management Services Staff Contact: Jonathan Alegre, Police Department